Peste Analysis

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1 Macro-environmental analysis (PESTE-analysis)
A company which wants to enter into a new market must first understand the target market’s business environment and how to create and retain customers by providing better value than the competition. As the environment changes, businesses must adapt in order to maintain strategic fit between their capabilities and the marketplace. When we are analyzing the macro environment of a company we usually use the PESTE analysis to help us to clear our goal, identify all the factors which are affecting our company directly or indirectly. Such us political factors, economic factors, social factors, technological factors, environmental factors and legal factors.

Political factors.

Political factors can influence marketing decisions by determining the rules by which business can be conducted. The relationship between government and business organizations can have major implications not only for the respective parties, but also other companies (Jobber 2004: 146) When we are talking about political factors we have to take in mind the trading policies. Finland’s general trade policy emphasized dismantling barriers to trade and investment and participation in an open world economy. The key challenges include customs duties and nontariff barriers to trade and trade distorting measures that are still prevalent in many markets. Finnish Competition Authority is an organization to protect sound and effective economic competition and to increase economic efficiency in both private and public-sector activity. Membership in the EU has changed the operating environment of Finland's trade policy, and the EU’s negotiating power has significantly strengthened Finland’s trade policy position. In this case because our company is going to import the goods from Slovakia and Austria that makes it quite easier because both countries are EU members. Trade in goods and services is a key component of the negotiations carried out in the World Trade Organization (WTO). The liberalization of trade in goods and services is one of Finland's trade policy objectives. Trade is important with exports accounting for over one third of GDP in recent years. Trade policy is managed by the European Union, where Finland has traditionally been among the free trade supporters. The export rate in Finland in 2011 was $85.4 billion and in 2010 it was $69.4 billion. There was a significant change in only one year time. Furthermore, the Finnish government also helps entrepreneurs in the start up grant as a discretionary support intended to secure one’s live condition during the business start-up phase, and if it is a private enterprise, the government also offers supporting fees monthly and considered as the applicant’s personal taxable income. Government also reduces the amount of starting money for limited companies from 8000 Euros to 2500 Euros. Finnvera can provide financing for enterprises in almost every sector. An Investments and Working Capital Loan is intended for newly established and existing enterprises to finance investments in buildings, machinery and equipment and to provide working capital needed because of growth. Finland’s economic policy has been to keep a high standard of living during the last decades. In order to improve employment and enhance the efficiency of the economy, Government encourages foreign investment in Finland which the present attitude towards foreign investment is liberal and since 1993 (KPMG, 2005).Foreigners are permitted to own real estates as well as shares in Finnish companies. Furthermore, strong growth in economy with the special geographic location serve both the domestic and surrounding markets, including the vest potential in Russia and the Baltic countries and other Eastern European countries. Finland also has other programs to attract foreign investors. Finland has a well developed infrastructure which includes quick and efficient access to Russian and Eastern European...
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